Karnataka government takes a cue from the new governments in both the Telugu States. Telangana and Andhra Pradesh are racing each other in attracting investment by easing the permissions clearance as much as possible. Both the states have deemed approval in place to lure the investors.
‘Deemed approval’ means that if a project does not get approval from a government agency within the period stipulated, then it is deemed to be approved. Sensing the gain with this policy, Karnataka government is brain storming with a host of departments such as power, water, pollution and labour seeking their opinion on what constitutes a reasonable time period for granting approval.
It is said that the system will be in place in Karnataka in this month itself. Karnataka is already on the losing side losing important industries to both the states. The major industry being Hero Motocorp which went to Andhra Pradesh.
